1st LD Writethru: U.S. stocks extend losses as rate hike fears grow

U.S. stocks declined for the third straight session on Monday, as Friday's strong jobs report triggered market concerns that the possibility for the Federal Reserve to raise interest rates this year becomes higher.

The Dow Jones Industrial Average fell 82.91 points, or 0.46 percent, to 17,766.55. The S&P 500 lost 13.55 points, or 0.65 percent, to 2,079.28. The Nasdaq Composite Index dropped 46.38 points, or 0.92 percent, to 5,021.63.

In the absence of major U.S. economic data on Monday, investors were still digesting Friday's much-better-than-expected jobs data.

The jobs report increased expectations that the Fed could raise interest rates as soon as September, which has weighed on market sentiment.

"In fact, some FOMC (Federal Open Market Committee) members will be pushing to start at the June meeting. We continue to expect they will wait until September, but July should not be ruled out," said Chris Low, chief economist at FTN Financial, in a note.

The unfolding Greek debt crisis remains in focus as talks between Greece and its creditors drag on.

On Monday, Greece reviewed the debt deal proposal tabled with international lenders last week, ahead of a new scheduled meeting between Prime Minister Alexis Tsipras, German Chancellor Angela Merkel, and French President Francois Hollande on Wednesday in Brussels on the sidelines of an EU summit, according to government sources.

After four months of inconclusive negotiations over a new reforms-for-cash agreement to tackle the five-year Greek debt crisis, the Greek Leftist leader is still seeking to break the impasse on a political level to avert a possible Greek default and Grexit this summer.

European shares continued to fall amid a G7 summit on Monday, with German benchmark DAX index at the Frankfurt Stock Exchange dipping 1.18 percent. Endite